Silver Mountain Resources Inc. announced the results of a Preliminary Economic Assessment (the "PEA") of its 100% owned Reliquias Project, Huancavelica department, central Peru. The PEA shows Reliquias to be a robust silver and base metals project with significant infrastructure in place. Restarting operations at this historic past producer could position Silver Mountain as the next producer in Peru, taking advantage of a favourable metals market.

The results of the PEA will be disclosed in an independent technical report in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and prepared by independent consulting firm RECURSOS RESERVAS Y EVALUACIONES MINERAS S.A.C. with specific subject matter expertise including Plenge Laboratorios for metallurgical test work, Airex, as ventilation consultants, DTC as geotechnical consultants, and Apeg for mine planning. A NI 43-101 compliant technical report in respect of the PEA will be filed on SEDAR+ within 45 days of this news release. The Project is planned as an underground mine operation.

For the PEA, the annual mining rate will be up to 322 ktpa. Production of both the bulk and zinc concentrates will begin simultaneously, each feeding separate processing circuits. The LOM is 9 years.

Two separate mining methods, Bench and Fill Stoping, and Sublevel Stoping, have been selected for Reliquias, considering the existing infrastructure and the ventilation and drainage plans. Production is assumed to commence following 10 months of refurbishment and commissioning of the existing flotation plant. The mine plan for Reliquias is based on mining a total of 2.4 million tonnes with a head grade of 3.71 oz /t silver, 0.32 g /t Au, 2.45% Zn, 1.62% Pb, and 0.26% Cu over a 9-year LOM using an NSR cut-off of $85.64 /t. A lower marginal cut-off grade of $74.28 /t was used, whereby lower grade blocks adjacent to existing infrastructure were incorporated into the resource base.

Mining dilution is variable, depending on the stope sizes, and rates between 17% and 36% were applied. Processing of the polymetallic mineralization will be through a conventional crushing and grinding circuit followed by froth flotation, concentrate thickening, and filtration in the existing plant. Two products, a bulk concentrate, and a zinc concentrate will be produced.

Metallurgical test work indicates a bulk concentrate grading 69.88 oz/t Ag, 31.09% Pb and 4.88% Cu. The zinc concentrates grade 53.45%. Sensitivity Analysis During the PEA study, an initial sensitivity analysis was conducted, focusing on metal pricing parameters within practical ranges.

This analysis elucidates how each variable affects essential project financial indicators like NPV and IRR. Opportunities and Exploration Potential The Reliquias deposit has not been fully delineated by exploration drilling, and the extension of several of the veins remain open along strike and at depth. Opportunities for additional value at Reliquias include, but are not limited to: i. Potential to extend individual vein systems both along strike and at depth with more drilling.

ii. Potential to find different styles of mineralization under the large alteration areas found in the Brownfields targets identified by Company geologists. iii.

Exploration potential for large porphyry-style mineralization under mineralized tourmaline breccias at the Yahuarcocha and Caudalosa targets which have not been reflected in the PEA. Furthermore, the Caudalosa mine, located adjacent to the flotation plant used for Reliquias, hosts a historical resource equivalent to a 38 Moz of contained silver ounces. An aggressive drill program is planned in the near term to convert these resources into current resource and incorporate them quickly into the mine plan.